China | Several key individual income tax preferential policies extended for one or two years

On December 31, 2021, the Ministry of Finance and the State Taxation Authority jointly released Announcement [2021] No. 42 and Announcement [2021] No. 43 confirming that, to lessen individuals’ tax burden, they are extending the following key IIT preferential policies that were scheduled to be abolished at the end of 2021

> Policy on tax-exempt benefits for expatriates extended to the end of 2023

> Preferential tax treatment for annual bonus extended to the end of 2023

> Tax-exempt policy for the situations (i) where resident taxpayers’ annual comprehensive income is up to RMB 120,000 with the additional tax to be paid through the annual self-declaration and (ii) where additional tax to be paid through the annual self-declaration is up to RMB 400, extended to the end of 2023

> Preferential tax treatment for equity-based incentives of listed companies extended to the end of 2022